Over the last three decades, American factories have become vastly more productive in terms of output per hour of labor.

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Both increase productivity, which is higher output per unit of labor input.

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Businesses usually increase productivity or output per hour worked by developing labor-saving devices and processes, in recent years that has involved computers.

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The Labor Department reported Wednesday that productivity, the amount of output per hour of work, increased at an annual rate of 2.2% in the first quarter, higher than the 1.5% increase that had been expected.

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Labor-saving inventions, technology, business processes, and trade all increase productivity output per hour worked and form the basis for higher wages as well as higher profits and the basis for our growing standard of living.

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